Run Rate Calculator

About this calculator

Run rate extrapolates a full year’s revenue from a shorter period of actual performance: Annual Run Rate = Revenue in Period x (12 divided by Months in Period), so a company that earns 250,000 dollars in a single month has a 3,000,000 dollar annualized run rate. The same logic scales a quarter’s revenue by 4 to get a quarterly-based annual figure.

Startups and growing companies use run rate to communicate momentum before a full fiscal year of data exists — it’s especially common shorthand in SaaS, where ARR (annual recurring revenue) is essentially a run rate calculation on recurring subscription revenue. The catch is that run rate assumes the recent period’s pace holds steady for the rest of the year, which overstates the picture for seasonal businesses (a strong holiday-quarter retailer will badly overestimate its annual run rate if extrapolated from Q4 alone) and understates it for companies growing quickly month over month.

This calculator takes your revenue for a recent period and its length and projects both the annual and quarterly run rate.